Changing the IPO Communications Paradigm
The market for initial public offerings (IPOs) has been following a depressingly familiar pattern. We hear that a company is listing. But markets are skittish (they have been for years), the IPO window could close at any minute and potential investors – who claim to have been burnt before – are arguing back hard about price. “Where’s the value?” they ask. How will the company generate earnings growth after year one?
Barely have the company’s plans been leaked in the financial gossip columns then we read that the IPO has been pulled and the mystical IPO window has shut again. No one seems surprised. The only surprise is that the cycle continues to be repeated.
And the latest research suggests it’s the worst it has been for five years.
Why? There are a number of reasons.